Now is the time to buy!!

Foreclosure Expert Says Time to Buy is Now

By Brad Finkelstein

SACRAMENTO, CA - With all the bad news about the real estate business dominating the headlines, the co-founder of a website dedicated to tracking foreclosures says now is the time to go and buy a home.

Alexis McGee, president of ForeclosureS.com, comments "Today's market could be the opportunity of the decade - and even decades to come - for the average person to pick up affordable housing at cut-rate prices. Homes today are available at discounts of 20%, 30%, and 40% off retail prices in some areas; choices are abundant, and inexpensive, reliable financing is now available, thanks to new higher Federal Housing Administration and Fannie Mae loan limits."

While the Mortgage Bankers Association recently reported record numbers of delinquencies, the states with the highest percentage of loans in foreclosure - Michigan, Ohio and Indiana - saw flat new foreclosure starts on a year over year and quarter-to-quarter basis.

"That's anyone's guess" if the market has hit bottom says Ms. McGee. "But clearly our government has taken essential steps to allow the market to recover in a way that stimulates the economy, keeps interest rates affordable, and helps buyers, sellers, and investors, alike."

Among the recent good news is the defeat of the mortgage cram down bill in the U.S. Senate, which would have undermined investor confidence in the secondary markets and resulted in higher interest rates and larger down payments for consumers, Ms. McGee explains.

Another positive is the injunction baring the Department of Housing and Urban Development from implementing a ban on seller-financed down payment assistance.

The third positive is the temporary increase in the conforming and Federal Housing Administration loan limits, giving those who had to seek "creative expensive mortgage financing options" access to more traditional loan products, she said.

However, while the number of homeowners helped by lender workout programs is growing, so are the number of serious delinquencies and foreclosures. The Neighborhood Assistance Corp. of America states homeowners facing foreclosure are not getting the workout assistance they need from lenders.

Ms. McGee says hopefully things will change as interest rates continue to drop and home prices rebound as expected later this year.